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Opinion | The billion-dollar question: is the gig economy sustainable?
- Drivers for Southeast Asia’s lucrative food delivery services are merely tiny cogs in a global contest between hugely capitalised giants
- The fast money has obvious appeal but there is precious little security as companies switch strategies and resources at will
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The gig economy is capitalism at its most brutal. Everybody wants to create the next “unicorn”, or the next Airbnb or Netflix that disrupts business as usual on a global scale.
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However, potential champions often end up like WeWork, its botched initial public offering in August causing its valuation to plummet 75 per cent from US$40 billion to US$10 billion and its long-haired, pot-smoking founder Adam Neumann to leave in disgrace.
Foodpanda, part of the publicly listed German group Delivery Hero, has also faced challenges in Malaysia – a market its local managing director Sayantan Das last year claimed it dominated with a 92 per cent market share. The service has sought to alter payment terms with its delivery riders, prompting strikes as well as government scrutiny from Mahathir Mohamad’s government.
Syed Saddiq, the country’s youth and sports minister, recently met with Foodpanda riders.
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Muhammad Hajid, a 19-year-old student, was one of those present. He became a part-timer in December 2018, hoping to cover his university costs and help his single mother.
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